News
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What privacy can a tenant expect?
Posted: Tuesday January 26th, 2010. 3:54pm
During such visits, the landlord does not have the right to inspect the contents of cupboards, drawers etc. Of course, when it comes to the final inspection of the property at the end of the tenancy it is permitted (indeed, it is essential) for ........................
Tenants and landlords can sometimes fall out over the question of when a landlord is allowed to enter a property and what are they allowed to do when they are there. A core right of a tenant is their entitlement to “quiet enjoyment” of the property they are renting. This means that the landlord is certainly not allowed just to turn up and let themselves in to the house or apartment without any warning that they are going to do so.
Landlords are however allowed to enter the property in certain circumstances and under certain conditions. The precise detail can vary from one tenancy agreement to the next, but it is typically the case that providing they give 24 hours notice, it is considered reasonable for a landlord to enter the property in order to:
- Carry out an occasional inspection, so as to see if any maintenance work is required and to ensure that the tenants are living in accordance with the terms of their tenancy.
- Allow tradesmen to carry out essential repairs.
- During the last two months of a tenancy, show the property to potential future tenants or purchasers.
During such visits, the landlord does not have the right to inspect the contents of cupboards, drawers etc. Of course, when it comes to the final inspection of the property at the end of the tenancy it is permitted (indeed, it is essential) for the owner or their Durham letting agent to inspect the inside of absolutely everything, to ensure that they have been properly cared for and all the tenant’s possessions removed.
It’s all just commonsense really. On the one hand, it’s only reasonable for the landlord to be able to monitor the condition of their property. On the other, it’s only courteous for the landlord to give the tenant adequate notice of his visit and to avoid being intrusive when he is there.
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What maintenance should a tenant do?
Posted: Tuesday January 26th, 2010. 3:49pm
Repairs and maintenance are the occasional subject of lively discussion between tenants on the one hand and landlords and their agents on the other. What sort of jobs can a tenant be expected to ....................
Repairs and maintenance are the occasional subject of lively discussion between tenants on the one hand and landlords and their agents on the other. What sort of jobs can a tenant be expected to do for themselves and what is it reasonable for them to expect from the property’s owner?
The underlying principles here are as follows. Tenants can be expected to:
- Do all the day-to-day jobs which are needed to keep the house or flat in good working order.
- Look after it in a proper manner, treating it with respect and due care.
- Bear the cost of all consumable items e.g. cleaning materials; and provide the basic cleaning tools eg. a vacuum cleaner (the landlord may provide these in some furnished properties).
- Tell the landlord immediately if there is a problem which requires immediate attention if further damage to the property is to be avoided.
Broadly speaking, landlords have to do everything else!
A few examples may help to clarify things:
- The tenant should replace light bulbs or fuses at their own expense but the landlord should repair a broken lamp or socket, unless it is the tenant who (by accident or malice) has caused the breakage.
- A blocked drain will generally be the responsibility of the tenant (who has put inappropriate things down it) unless the drain has collapsed, in which case it will be the landlord’s responsibility. Of course, the cause of the blockage may not be clear until the drain has been unblocked.
- A tenant should clear the gutters, but the landlord is responsible for keeping the gutters in good order.
A Durham property owner who doesn’t want to worry about such things always has the option of choosing our fully-managed service and then relaxing while we get on with the hard stuff!
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The Importance of Accompanied Lettings
Posted: Wednesday January 20th, 2010. 5:25pm
We strongly believe that a letting agent should conduct all the viewings of any house or flat. There are a number of reasons for this.....................
We strongly believe that a Durham letting agent should conduct all the viewings of any house or flat. There are a number of reasons for this.
The most important reason is that prospective tenants tell us the truth. Despite what you might read in the press, the great majority of British people are just too polite. When it comes to looking at a house or flat with the owner, they just can’t bring themselves to tell the truth. They may hate the shade of green in the living room; be revolted by the bedroom carpet or have a funny turn when they look at the dining room curtains, but when it comes to giving candid feedback to an owner, they just bottle it.
Put them with a skilled letting agent however, and they will give as much feedback as you could wish for. This then gives the agent the opportunity to suggest that the owner of the property may (for example) be willing to repaint the living room, replace the carpet or allow replacement of the curtains.
Another reason is that we are specialists at conducting viewings. We understand what are the things that it is worth telling a prospective tenant and, just as important, we know when to keep quiet. We create an atmosphere where questions can be asked and advice given without fear of a hard sell. This is what we do, and we do it well.
We also like to accompany viewings because that way we get to know both the properties and the prospective tenants. We are then much better placed to ensure that we show the right properties to the right people, thus maximising your chance of an early let to a great tenant.
Last but certainly not least is the issue of the security of your Durham property. We would never ever give someone the keys and tell them simply to drop them back once they’d had a look. That is not the Cathedral Lettings way.
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Can't sell so must let?
Posted: Wednesday January 20th, 2010. 5:21pm
The last year has seen a growing number of people finding that they cannot sell their property at a price that they are happy with. If they need to move anyway, then they are................
The last year has seen a growing number of people finding that they cannot sell their Durham property at a price that they are happy with. If they need to move anyway, then they are left with two options: Option 1 is to leave the property empty while Option 2 is to let it out.
Option 1 does guarantee that the property would be immediately available if required for sale, but there are a variety of disadvantages.
Firstly and most obviously, the property is generating no rent. Whether you have a mortgage or are lucky enough to own it outright, you must be very wealthy indeed to be able to ignore that rental income. And even if you don’t need that rent yourself, you could be giving hundreds of pounds a month to charity.
Secondly, you will have to bear the cost of the council tax and utility bills, so instead of your property being an income-generating asset, it actually becomes a cost-generating liability.
Thirdly, you run the significant risk that without an occupier who uses the heating, does some basic garden maintenance and is there in case of flood etc the condition of your property may deteriorate, especially during the cold winter months.
Option 2 does carry the very modest disadvantage that possession cannot be established immediately. However, a tenancy agreement drawn up by a professional Durham letting agent can ensure that after an initial (typically six month) period, the tenancy will go onto a rolling (what we call periodic) basis meaning that two months notice can be given, should the market be seen to pick up and a selling opportunity arise.
Against that, your property will be generating an income, your tenant will be paying the council tax and utilities, and both tenant and managing agent will be keeping an eye on the property.
Can you really afford to be throwing that money away? If not, give us a ring on 0191 374 1234 and we will be delighted to visit your property and guide you through the process of letting it to top quality tenants.
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Taxing Issues
Posted: Friday December 11th, 2009. 7:45am
We are often asked about what landlords can and can not offset against rental income in respect of a residential property. This can be a.......................
As the leading letting agents in Durham, we are often asked about what landlords can and can not offset against rental income in respect of a residential property. This can be a complex area and we would always recommend that landlords seek specialist tax advice.
However, there are certain rules of thumb in response to some of the most common questions. Generally speaking, anything that could be regarded as a capital investment rather than an operational or maintenance cost can probably not be immediately offset against taxable income in its entirety.
For example, you might think that it would be quite reasonable to assume that the cost of furniture can be set against tax as it is necessary for a furnished let. However, whilst the initial cost of furniture and fittings may be allowable against capital appreciation, it can not be offset against annual revenue, nor can any general improvement you make to the property. Nevertheless, the cost of any repairs or maintenance of these capital items may be claimed. Alternatively, a wear and tear allowance of 10% of the rents received may be deductible.
So long as you rent out your Durham property for at least 26 weeks a year, then you should be able to deduct the interest on any loan used to buy the property (but not if the property has subsequently been remortgaged for other purposes). However, any capital repayment element of your mortgage can not be claimed in this way.
Generally speaking, if an expense happens once, then it is regarded as a capital input, but if it is ongoing, such as insurance, interest, letting agency fees, white goods replacement, repairs or bi-annual redecoration, then this would constitute an operational cost and as such may be taken account of against rental income in your annual tax return.
Perhaps it’s not quite so complicated after all!
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Manage Your Investment
Posted: Tuesday December 8th, 2009. 7:30pm
Some landlords simply use a letting agent as a route to market in order to find a tenant. However, whilst a return on investment is ...........................
Some landlords simply use their Durham letting agent as a route to market in order to find a tenant. However, whilst a return on investment is one thing, sleeping well at night is quite another. A managed service is not just about chasing late rent, resolving disputes and inventory control; although all of those things are an important part of property management.
When your property is professionally managed, it’s all about accountability. This means regular inspections to check that your tenant is treating your investment with the respect it deserves. During these inspections, well-trained staff are able to identify any areas that should be investigated in order to avoid or reduce costs later. An example would be a blocked gutter. Normally, you would only hear about this when the tenant calls to tell you that water is coming in, plaster has come away from the wall and there is mould on the ceiling. Call in the dehumidifier, plasterer, and painter – and you have a large bill and an unhappy tenant.
Many tenants also prefer to rent a Durham property that is managed through a letting agent, possibly because they have had a “problem landlord” in the past and they tend to stay longer.
Additionally, no matter how compliant a tenant may seem at the outset, the last thing a landlord needs is someone phoning him/her at all hours with some minor issue over a draft, dripping tap, clanking pipes, noisy neighbours, etc. All of these are part of the day’s work for a dedicated managing agent!
One of the most important considerations is that as property managers, we get to know our clients’ tenants, and have a good understanding of their plans, often pre-empting a premature departure and enabling us to prepare to re-let the property so as to minimise the time it is empty.
Most of our landlords derive great value from our managed service and we invite you to experience the difference yourself. Call us on 0191 374 1234 for a friendly discussion about how we can help you make the most of your Durham property.
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A Proper Inventory
Posted: Friday November 27th, 2009. 3:04pm
All residential tenancy deposits must by law be protected by being lodged in one of the three government-recognised schemes, such as the Deposit Protection Scheme (DPS). These schemes are all evidence-based. This means that .................
All residential tenancy deposits must by law be protected by being lodged in one of the three government-recognised schemes, such as the Deposit Protection Scheme (DPS). These schemes are all evidence-based. This means that the decision to either return or withhold a deposit at the end of a tenancy is made by considering any differences between the condition of the property at the beginning and the end of the tenancy.
This can only be achieved when a formal inventory has been created. This is as important in respect of unfurnished properties as it is for furnished ones, because a good inventory is not just a list of contents, but also a statement of condition of those contents and of the actual fabric of the building, including its fixtures and fittings.
For example, whilst the lease may have a clause stipulating that the property must be returned in the same condition in which it was initially taken, how can this be proven without a schedule of condition?
Apart from the obvious one relating to identifying missing contents, there are several other reasons to have an inventory prepared. Perhaps a tenant has broken something and has replaced it with an inferior substitute – possibly one that does not comply with a landlord’s legal obligations, such as a non-fire retardant sofa.
An inventory also limits a tenant's ability to request repairs or improvements to things that were actually evident at the time of letting. Additionally, when a tenant knows that every item and its condition has been recorded, they are more likely to treat the property with the respect it deserves.
Of all the costs associated with letting and protecting your investment, the cost of producing a watertight inventory is probably one of the most important. Preparation and agreement of an inventory is part of our managed service. Where we do not manage a property we encourage landlords to prepare their own inventory or employ the services of an inventory clerk and to agree this with the tenant at the start of the tenancy.
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Gas – The Landlord’s Responsibility
Posted: Thursday November 19th, 2009. 9:17am
Gas and electricity can both be lethal. From a landlord’s perspective however, the law relating to gas safety is more ........................
Gas and electricity can both be lethal. From a landlord’s perspective however, the law relating to gas safety is more specific and stringent than it is for electricity, with substantial fines or even imprisonment for breaches of the Gas Safety (Installation and Use) Regulations 1998. These regulations impose a duty on landlords to use a Gas Safe Registered engineer to undertake repairs and maintenance to pipe work, appliances and flues.
There is a further duty on landlords to arrange a gas safety check to be carried out every 12 months, also by a Gas Safe Registered engineer. You should provide your tenant with a copy of the Safety Certificate (sometimes called a CP12) before they move in, or within 28 days of the inspection for existing tenants. You must also keep a record of each safety check for two years.
Between tenancies, you have a responsibility to check that none of the gas pipework, flues or appliances have been tampered with. If they have, then you should have these checked by a Gas Safe Registered engineer.
As there have been several instances of bogus Gas Safe Registered engineers it is always worth checking their credentials with www.gassaferegister.co.uk. CORGI registration is no longer sufficient.
These checks apply to LPG (bottled gas) as well as mains gas and to any gas appliance provided by you for the tenant’s use in the property. Should the tenant wish to install their own gas appliance, you are not strictly responsible for the safety of these. However, it might be a good idea to provide for annual inspection of tenants’ appliances as well.
You should also show your tenant how to turn the gas off in the event of a suspected leak, and provide them with the emergency gas freephone number of 0800 111 999.
And if you haven’t got a tenant at all, then our own emergency tenant-finding telephone number is 0191 374 1234. It always pays to be safe in looking after your Durham property!
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Consent to Let
Posted: Wednesday November 11th, 2009. 5:20pm
For many homeowners facing the reality of the current climate, letting is an obvious and very positive alternative to.....................
For many homeowners facing the reality of the current climate, letting is an obvious and very positive alternative to selling. With the right expert help from your Durham letting agent, the matter should be quite straightforward, although there are certain consents that will in due course need to be obtained.
You will certainly need the consent of your mortgage provider. They are unlikely to object, but you could be in breach of your mortgage terms if you have not obtained their consent before letting your property. They may also charge an administration fee. One important thing to check is that there is no clause that increases the interest rate on your loan should the property be used as a “commercial venture”.
If you own the freehold (most houses), you should check if your title deeds impose any restrictive covenants of which the tenant should be aware. For example, there may be a restriction preventing anyone keeping a caravan on the forecourt, or storing building materials for more than a few days. If your property is leasehold (most apartments), you will have to check the conditions of your lease as there may be similar restrictions and/or you may (very occasionally) have to obtain the freeholder’s consent.
Importantly, once consent has been obtained, you must ensure that your tenant is aware of, and complies with, any obligations you yourself would observe as owner in residence.
Finally, insurance. Ideally, you will purchase specialist landlord insurance which will cover a range of eventualities. Alternatively, you could obtain permission from both your buildings and contents insurer. There may well be an increase in premiums where a property is let. As a minimum you should ensure that you are covered for any third party liability in respect of injuries to your tenant whilst at your property.
Please let us know if you would like us to look over your lease or title deeds with you to see what consents might be required to ensure your peace of mind as you rent in Durham.
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With you all the way
Posted: Wednesday November 11th, 2009. 5:15pm
The sad truth is that many letting agencies do no more than.........................
The sad truth is that many Durham letting agents do no more than act as a broking service that matches people to property. However, we at Cathedral Lettings are acutely aware that there is far more to successful letting than this alone. Indeed, nationally, about 25% of initially agreed tenancies fail to prove satisfactory for one reason or another. This is likely to be worse at times when there a lot of rental properties on the market.
One of the most common reasons for a tenancy failing to go through is when a tenant gets cold feet and withdraws as a result of what the psychologists call “buyer remorse”. This is a fairly common phenomenon that occurs when a tenant feels overwhelmed by the apparent enormity of their decision and wonders if perhaps they are paying too much, or could find a better alternative, especially when other agents are continually offering them other properties, many of them no doubt cheaper.
Your prospective tenant may lose their job, or get a promotion. They might decide to get married or divorced; they might inherit or win a fortune, or their business may be experiencing difficulties. They could even die! While these types of issue are generally unavoidable and naturally have a profound effect on people’s decision to move, the most common problems concern timing. The sooner the letting specialist can conclude a let, the smaller the opportunity for the tenant to withdraw.
We go to great lengths to help you secure the right tenant. Your designated property manager will be very familiar with your circumstances and plans. He or she will usually be the same person who negotiates for you, draws up the tenancy agreement and supervises the taking of the inventory. This is why we do not have a separate “progression“ department. We find that our clients (landlords and tenants) appreciate the level of personal dedication and accountability provided by a single point of contact, which in turn leads to understanding, trust, and a speedy conclusion.
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The Changing Shape of the Market
Posted: Wednesday November 11th, 2009. 5:11pm
The property market has historically been fuelled from below, with first time buyers paving the way for.............................
The Durham property market has historically been fuelled from below, with first time buyers paving the way for sellers to move onward and upward.
However, the historic dramatic rise in property prices combined with lenders’ increasingly onerous demands for high deposits has resulted in a decline in the number of first time buyers able to get their foot on the ladder, with their average age having risen to 31.
Whilst this is clearly unfortunate for young people wishing to buy, it does not mean all out gloom for the property market as a whole, but is simply a reflection of a shift in lifestyles changing the socio-economic shape of the market.
If fewer young people are buying, then more are renting, which has provided a huge buy-to let opportunity that will drive growth, or at least provide stability, over the next decade.
There are several other factors that support this view. Firstly, according to market researchers Mintel, over the next few years there will be a predicted shortfall of over half a million properties available to purchase, which will inevitably maintain some degree of pressure on prices. Secondly, the student population is expected to rise by 8%, and there will also be a surge in the number of single households to 1.2 million.
Add to this an increasingly flexible job market and increasing investor awareness of buying opportunities, and we have the recipe for considerable growth.
Far from being a fad, nearly two thirds of buy-to-let investors expect to be in the market for at least 10 years, with more than half of existing landlords planning to increase their portfolio within the next decade (source ARLA).
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Sharers
Posted: Wednesday November 11th, 2009. 5:07pm
The number of people sharing rental properties is rising. There is clearly a social trend afoot, possibly prompted by...........................
The number of people sharing Durham rental properties is rising. There is clearly a social trend afoot, possibly prompted by the virtual introductions and “easy friendships” provided by social networking sites which tend to attract precisely the age group of those who are more likely to rent than buy.
This provides a great opportunity for landlords. Firstly, it increases the number of prospective lets as more people are now able to rent, who may not have been able to do so alone. Secondly, void periods tend to be reduced, as there is no longer any need for the tenancy to end if just one party wishes to move out – simply find another tenant to pick up his/her share. Thirdly, there can be a positive effect on rents as say three people obviously have greater spending power than one. Fourthly, three parental guarantees can reduce risk of rent loss or damage.
However there are some pitfalls of which to be aware. Three tenants instead of one could triple the possibility of problems. So our advice to landlords is always to do credit checks and (if necessary) take full references and guarantees on each tenant. This means harder work for us, but we think it’s worth it for your peace of mind. You will also need to get commitment from three people instead of one, which can be difficult, and try not to rely on one person saying his mate will like it. If possible, make sure everyone views the property!
In terms of the presentation, sharers will each prefer a similar size of bedroom to the others and are possibly less likely to spend time together in the sitting room. So if you have a choice, three large bedrooms is better than one being a single in favour of a larger lounge. Plenty of kitchen cupboards can be an attraction and a dishwasher will always prevent arguments as to whose turn it is to wash up!
As ever, please feel free to contact us if you would like detailed advice on how to maximise the return from your own Durham property.
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Showing Tenants Around
Posted: Wednesday November 11th, 2009. 5:04pm
Some people feel that flats and houses should be able to “let themselves” and do not need to..........................
Some people feel that flats and houses should be able to “let themselves” and do not need to be shown by letting agents. While this may be true of certain exceptional properties, or where achieving the optimum rent is not an issue, most properties require the skills of a well-trained letting agent if they are to secure a good rent within a reasonable timescale.
One benefit of your Durham letting agent showing prospective tenants around, rather than you doing it or (believe it or not) the agent just handing out the key, is prompt and honest feedback. Many tenants wish to avoid appearing rude and instead build up a landlord’s hopes by telling them what they want to hear; “It’s lovely – we’ll get back to you”. By the time they have seen several other properties their feedback to the agent about your particular property is likely to be minimal.
Additionally, the tenant will probably want to discuss aspects of the property out of the landlord’s earshot for ear of offending. When we show your property, immediate feedback can be generated from tenants who might not have been so frank with you directly. This helps us understand their preferences and allows us to fine-tune our marketing efforts. Our landlord clients often tell us that sincere post-viewing feedback significantly helps to reduce the stress of letting, and after all, this is surely one of the most compelling reasons for appointing a professional and reputable letting agent to represent you as you seek to maximise your investment.
Please feel free to contact us at any time on 0191 374 1234 if you would like to discuss any aspect of letting your Durham property, without obligation.
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Touching Up
Posted: Wednesday November 11th, 2009. 4:59pm
A tenanted property can sometimes experience harder wear and tear than..........
When letting your Durham property, you naturally want it to look its best, but how far should you go in terms of presentation?
Firstly, aim to understand how your property “sits” within the market. Not all tenants have the same criteria, so walk through the house with your Durham letting agent to identify your property’s strengths and weaknesses. Look through the eyes of a typical likely tenant, and consider what aspects should be improved to enhance your chances of letting to that person.
For example, it may be that your property is in generally good condition, but the carpets let it down. Whilst you could simply take account of this in the rent, new, or professionally cleaned, carpets can transform the presentation of a property and appeal to a tenant who might otherwise be put off. However, if your property is in need of general updating, a new carpet could be a waste of money unless combined with an overall improvement.
A tenanted property can sometimes experience harder wear and tear than an owner-occupied one, and a new tenant will always prefer to “make it their own” rather than simply taking over from the last tenant. So a simple coat of paint can generally do wonders and need not be expensive.
Additionally, a tenant who moves into a fresh, clean well-presented, newly-redecorated property, knowing they need to return it one day in the same condition, is more likely to look after it more carefully and even stay longer. A tenant with a sense of pride is generally a good tenant!
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The Advertising Myth
Posted: Wednesday November 11th, 2009. 10:49am
It would be perfectly reasonable to assume that as a property comes onto the market to let, a letting agent will simply....................
It would be perfectly reasonable to assume that as a property comes onto the market to let, a letting agent will simply post the property details on various property portals and wait for the tenant enquiries to roll in.
However, this approach is somewhat simplistic and we take a much more strategic and proactive approach to handling new tenant enquiries. There is a common misconception surrounding adverts in that many people think that a property lets as a direct result of the publication of its corresponding advertisement. This is very often not true.
In fact, the overwhelming majority of tenants who enquire about a specific property do not go on to rent it, but rent something else instead. This is because only limited information can be conveyed in an advertisement, such as rent, location, accommodation and condition. Yet the decision to rent is usually much more complex and this is something that cannot be adequately conveyed until the property is actually visited.
So while it is important to choose a letting agent that advertises extensively (for example we feature our clients’ properties on a number of portals including Rightmove and Findaproperty.com), it is more important to choose an agent who knows what to do with an ad enquiry rather than simply putting the tenant on a mailing list!
A good agent will use its advertisements to attract tenants and then use their skill, training and judgement to help them identify the right property – which quite possibly will not be the one about which they originally enquired. This effective method is one of the reasons why we enjoy such an excellent ratio of new applicants to lets agreed, which is of course to our clients’ substantial advantage. Why not join them? Please feel free to call 0191 374 1234 now for a confidential overview of your Durham property or entire portfolio.
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The Critical Importance of Referencing
Posted: Tuesday September 15th, 2009. 3:07pm
In an ideal world, once a tenant has been found, it would be good to think that the landlord can simply....................
In an ideal world, once a tenant has been found, it would be good to think that the landlord can simply sit back and watch his/her investment deliver the anticipated return on investment without further involvement. Indeed, this is one of the reasons why some letting agents only offer a tenant finding service. Simple really – or is it?
Experience is a great teacher, and we have proven time and again that tenants must be fully referenced before signing. Indeed, before we rent a property to even the most apparently upright tenants, we thoroughly research their rental history. This involves checking with a credit referencing agency and enquiries from a previous landlord.
Unreliable tenants cause landlords the most sleepless nights according to research by the National Landlords Association, with 57% of NLA members saying that unreliable tenants are one of the most worrying aspects of being a landlord.
So what is a reliable tenant? Well obviously one who pays the rent, in full on time, and makes sure all the utility bills are also paid. But reliability goes beyond this. Will they turn out to be anti-social, perhaps making excessive noise, leading to complaints from neighbours? Good landlords are keen to make sure that their tenants behave as ‘good citizens’.
Damage to the premises, fixtures, fittings and contents, creates hassle for landlords as well as significant additional expense, especially when it goes beyond what is covered by the tenant’s deposit."
Approximately 36% of landlords nationally (source NLA) have, at some point in the past, been obliged to resort to the courts to seek possession of a property from a troublesome tenant. Our job as dedicated Durham letting agents is to ensure that the right tenant is secured in the first place, and then managed well, so that the landlord can enjoy the peace of mind that comes from knowing your investment is delivering a return on investment, not a headache.
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Top Tips for Tenants
Posted: Monday September 14th, 2009. 7:30pm
The rental market is getting increasingly busy, so be thorough in your research – avoiding the need to move again in a few months’ time.
The rental market is getting increasingly busy, so be thorough in your research – avoiding the need to move again in a few months’ time.
Next, position yourself as a strong contender by having your employer and previous landlord ready to provide prompt and complete references.
Make sure you agree with the inventory and condition report, then sign and date it to avoid any misunderstandings down the line.
Always demand a written receipt for your deposit and details of where it has been lodged.
Ensure you have emergency procedures in place and that your landlord or agent provide a telephone number to call if anything goes wrong. Know where the water stopcock, gas and electricity cut-off switches are in case of an emergency.
If you are going away for more than a fortnight, it is a common courtesy, and a practical one, to let your landlord know that you are going to be away – again in case of any emergency.
Don’t hesitate to report any problems, such as a leaking roof, to the landlord. They will appreciate the opportunity to remedy the issue before it gets worse. Remember that if you’re slow in reporting a problem and things get worse, the landlord is actually entitled to charge you for the extra costs arising from the delay!
If you are genuinely competent at fixing something then by all means ask your landlord if they would object to you doing it. However, don’t attempt anything other than a very minor repair without your landlord’s consent.
Above all, pay your rent on time. A happy landlord will usually be more than willing to make your tenancy as comfortable as possible in the knowledge that they have a responsible and reliable tenant. They may even be less inclined to increase the rent on renewal! -
Three Important Regulations for Landlords
Posted: Monday September 14th, 2009. 7:25pm
Whilst there are over one hundred pieces of legislation with which a letting agent should be familiar, three come particularly to mind in relation to advising landlords on the basic responsibility that they have for the safety of their tenants, as well as helping landlords avoid a £5,000 fine or six months in prison for non-compliance!
Whilst there are over one hundred pieces of legislation with which a letting agent should be familiar, three come particularly to mind in relation to advising landlords on the basic responsibility that they have for the safety of their tenants, as well as helping landlords avoid a £5,000 fine or six months in prison for non-compliance!- The Furniture and Furnishings (Fire) (Safety) Regulations 1988 (as amended).
Most furniture purchased new after 1st March 1990 should be marked with a display label (depicting a smoking cigarette) showing that it complies with this regulation. There should also be a permanent and non-detachable label stating compliance. Bed bases and mattresses should have a label stating that it meets BS7177. The aim is to improve safety by requiring all furniture and furnishings in rented properties to meet the “match test” criteria.
The regulations apply to all upholstery and upholstered furniture, and loose fittings, permanent or loose covers including: beds, mattresses, pillows, armchairs and cushions, but excluding carpets and curtains. - The Gas Safety (Installation and Use) Regulations 1998
For all rental property, the regulations require that work to gas appliances and fittings shall be carried out by a qualified engineer who is registered with the Gas Safe Register. Gas appliances and flues in rented accommodation must be checked for safety within 12 months of being installed and thereafter at least every twelve months. A copy of the safety check record must be given to any new tenant prior to occupation and thereafter within 28 days of the annual check. - The Electrical Equipment (Safety) Regulations 1994
The regulations state that all electrical equipment supplied is safe, although there is no specific definition of “safe”. The least landlords should do is to check all appliances between tenancies for obvious signs that they are unsafe, and check that they carry the CE symbol. Information manuals should be supplied if the safe operation of the item relies on specific know-how.
- The Furniture and Furnishings (Fire) (Safety) Regulations 1988 (as amended).
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The Rental Rush
Posted: Monday September 14th, 2009. 7:21pm
The end of the holiday season usually prompts great activity in the rental market and landlords should not only be prepared for this, but also take advantage of it.
The summer holiday not only marks the end of the school year, but also the end of a time of employment, with a surprising number of people handing in their notice immediately before leaving for their holiday. So in many ways early summer is a good time to capture these tenants and we have indeed been especially busy over the past few weeks.The end of the holiday season usually prompts great activity in the rental market and landlords should not only be prepared for this, but also take advantage of it.
The summer holiday not only marks the end of the school year, but also the end of a time of employment, with a surprising number of people handing in their notice immediately before leaving for their holiday. So in many ways early summer is a good time to capture these tenants and we have indeed been especially busy over the past few weeks.Every property let usually means that someone else is moving on, yet many landlords assume that the summer is quiet and they would be best to wait until the autumn before bringing a property to market. This can be a mistake. This is because everybody else thinks the same thing, creating a dearth of properties during the summer and a glut in the autumn, putting downward pressure on rents. Also, many people want to be settled in ideally before the start of the new school or university year or a new job.
Likewise, because this is an annual phenomenon, many tenancies come to an end at about this time, causing a surge in tenant enquiries.
So why not take advantage of this activity by bringing your property to market before other people do? Alternatively, why not tell us that your property “will be coming to market” well in advance of the current tenant vacating, thereby giving prospective tenants a special opportunity.
Please feel free to contact us on 0191 374 1234 for a rapid response to a pressing need.
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Who’s Choosing Your Property?
Posted: Monday September 14th, 2009. 7:19pm
An Englishman’s home may be his castle – but research suggests that it is often a woman who chooses it!
An Englishman’s home may be his castle – but research suggests that it is often a woman who chooses it!
94% of letting agents polled in a recent survey confirmed that it is usually the woman who has the last word in choosing which home a couple rent!
Two of the most important factors that attract women in a home are a modern kitchen, and an en-suite bathroom (ideally with his-and-hers basins). 91% of agents questioned said that a good kitchen is the single feature most likely to clinch a deal. 95% say it is the woman, rather than the man, who is more inclined to want a his-and-hers en-suite bathroom.
For men, almost half the letting agents polled say that a reception room or recreation room large enough for a wide-screen TV is the most important single feature. Both men and women feel that a back garden, protected from neighbours’ watchful eyes by high hedges or fencing, is a strong attraction.
Whilst men and women may have different agendas when they seek their ideal home, landlords would be well-advised to consider who typically has the most influence on the renting decision.
When making improvements on a property before letting it, it is therefore important to focus on those things that will mostly impress the driving force in the relationship. So whilst the garden wall may need rebuilding, perhaps the money would be better spent on improvements to the kitchen or the creation of an en-suite bathroom instead. (Unless the wall is actually in danger of falling down and hurting someone of course!)
Remember, you are letting a home and the lifestyle that comes with it – not just the bricks and mortar, so take advantage of the respective impulses of the most influential people in the renting decision – women! -
Putting Your Property on the Map
Posted: Monday September 14th, 2009. 7:17pm
If location is fundamental to letting a property, then mapping is surely the most obvious way of highlighting location.
If location is fundamental to letting a property, then mapping is surely the most obvious way of highlighting location.
We choose to use locational maps on our website as they make it easy for tenants to identify the property in relation to its surroundings. This is particularly useful when a tenant is considering a property that is slightly outside an area they might have preferred, as they can see from the map that the property is actually not that far away from their chosen area.
Additionally, as an aerial perspective, maps are an excellent way of showing areas of open spaces such as parks, woodland and lakes which are not always possible to see when driving round an area. This is particularly the case with the satellite image overlay which we use on our maps. Perhaps the area is not quite as built-up as it appears at street level!
But the most obvious benefit of the use of mapping is that it makes a property easier to find. When tenants have seen four or five properties on a cold wet autumn day, if they can’t find the property easily, it’s all too easy simply to give up, resulting in a lost viewing. (This is another reason why a “To Let” board is so important as well.)
As well as providing straight-talking good advice for landlords, we never forget that the job of a good letting agent is to help make it easier for tenants to find the right property – literally! -
Furnished or Unfurnished?
Posted: Monday September 14th, 2009. 7:16pm
Landlords often ask us whether it is better to let their property furnished or unfurnished. As with so many aspects of lettings, the answer to this question is not straightforward.
Landlords often ask us whether it is better to let their property furnished or unfurnished. As with so many aspects of lettings, the answer to this question is not straightforward.
Firstly, if you have a lot of furniture and nowhere to put it (eg. if you are going to work abroad for a couple of years), then the answer is almost certainly that you should let your property on a furnished basis. You may not get more rent, but you will at least avoid the huge cost of furniture storage. Having said that, we would probably not advise the inclusion of your finest antiques. Remember also that your favourite old sofa may not comply with safety laws so will have to be found an alternative home anyway.
If you would actually be buying furniture in order to offer your property furnished, then our advice will depend on whether it is a house or a flat that you own.
The market for furnished houses is quite limited. Most people who want a house either have a family with them or are older. In both cases, they tend to have furniture of their own and are not looking for a furnished house. A few times a year we will have a family (normally coming from abroad) who want a furnished house, but they are the exception rather than the rule. Our general recommendation is that it is not worth spending money to furnish a house for letting.
Flats and apartments are quite different from houses. There is a strong market for furnished as well as unfurnished apartments. Many prospective tenants for apartments do have their own furniture but others are either young professionals and postgraduates who have not yet had the pleasure of those expeditions to Ikea or are older professionals who are working away from home for a short period and therefore need their temporary home to be furnished. Furnished apartments may only get a little more rent than unfurnished, but they do tend to let more quickly.
Next week I will talk about what “furnished” actually means. -
What does “furnished” actually mean?
Posted: Monday September 14th, 2009. 7:15pm
We are often asked what “furnished” actually means. Needless to say, the answer is not as obvious as people might think and there is no precisely agreed national definition. However, at Cathedral Lettings we tend to work with four broad terms which indicate different levels of “furnishedness”: unfurnished; part-furnished; furnished and fully furnished.
We are often asked what “furnished” actually means. Needless to say, the answer is not as obvious as people might think and there is no precisely agreed national definition. However, at Cathedral Lettings we tend to work with four broad terms which indicate different levels of “furnishedness”: unfurnished; part-furnished; furnished and fully furnished.
Generally speaking, if a property is unfurnished, then it has no furniture in it! No surprises there, but it will probably still have a cooker or oven and hob; and may well have other appliances as well. It will have floor coverings such as carpet, laminate or vinyl, or alternatively stained and varnished floorboards. Many unfurnished properties will also have curtains or blinds.
The term part-furnished is probably the one requiring the most flexible interpretation. Part-furnished properties typically contain the same as an unfurnished one plus some items of furniture which the landlord had available and thought might be useful to an incoming tenant.
A furnished property is easier to define. It should have a full set of white goods (which may or may not include a tumble dryer and a dishwasher, depending on space available and other factors). It will also have floor and window coverings as described above. It will have beds, chests and/or wardrobes and generally bedside tables as well. It will have easy chairs and/or sofas and a dining table and chairs. It will normally have a coffee table and occasional tables and may also have table lamps.
The least common type of property in the Durham market is fully-furnished. A fully-furnished property is one that you could move into with little more than a wash bag, a change of clothes, a set of bed linen, a towel and a ready meal. It should have a fully equipped kitchen including microwave, crockery, cutlery, pots and pans. It will normally have a TV and may even have a CD player. It’s not quite a large hotel room, but it’s not far off! -
Buying to Let – Getting Practical
Posted: Monday September 14th, 2009. 7:14pm
An increasing number of people are unhappy with the interest they are earning on their cash and are also taking the view that property prices must be getting near the bottom. As a result, they are beginning to think about buy-to-let property as a sensible home (excuse the pun) for their savings. Here are some practical elements that they should consider as a part of that investment decision:
An increasing number of people are unhappy with the interest they are earning on their cash and are also taking the view that property prices must be getting near the bottom. As a result, they are beginning to think about buy-to-let property as a sensible home (excuse the pun) for their savings. Here are some practical elements that they should consider as a part of that investment decision:
Attitude: Buying to let is a long-term investment, so don’t stretch yourself, because if you had to sell in the short term you would almost certainly lose money.
Choose well: Follow your head not your heart. So take advice as to which property would represent a sound letting proposition. Is there a strong market in your area?The right mortgage: It may be worth taking out a modest mortgage to enable you to get the right kind of property. Definitely worth speaking to a specialist here.
Hidden costs: Remember insurance, maintenance and long-term improvements. The biggest unforeseen cost could be a period of vacancy, although a good agent will help to minimise those.
Management: You could have a letting agent find the tenant and then you manage the property yourself or you could go for the low-stress option of having the agent manage the entire thing. Obviously, the latter costs a bit more.
Insurance: You may require special insurance, and as a landlord you also have certain responsibilities such as compliance with gas safety and fire regulations.
Tax: Rental income is taxable but mortgage interest payments should be deductible. Any profit you make when you sell the property might also be liable to Capital Gains Tax, so it may be worth putting the property in joint names to take advantage of two personal allowances.
Please feel free to call us for a chat if you would like to investigate buy-to-let opportunities in the Durham area.
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All Roses in the Garden?
Posted: Monday September 14th, 2009. 7:14pm
Landlords often ask us what they should do about their garden and what they can reasonable expect of a tenant in terms of looking after it. These are good questions and certainly need to be considered.
Landlords often ask us what they should do about their garden and what they can reasonable expect of a tenant in terms of looking after it. These are good questions and certainly need to be considered.
Having a well-cared for garden can definitely help to attract good tenants, particularly if they arrive on a nice sunny summer’s day. However, if the garden is just too magnificent and obviously requires lots of work, then it may actually scare some people off. In an ideal world, pleasant and tidy but without too many complicated features is probably ideal.
Once the tenant is in, then we come to the question of what we can reasonable expect of them. Of course, any properly prepared tenancy agreement will require the tenant to maintain the garden in good order. But we can make that demand more realistic by keeping the garden relatively simple. By this I mean mainly lawn with perhaps the odd flowerbed and shrub. With this kind of garden, it is both realistic and reasonable to expect the tenant to look after it properly.
People sometimes ask who should pay for the gardening equipment. Our advice is that it is reasonable for the landlord to provide a garden fork and spade if they are needed, but that for reasons of safety and maintenance the tenant should provide their own lawnmower. After all, we expect them to provide their own vacuum cleaner for the house, so why not a mower for the garden? With one of the large supermarkets currently offering a mower for under £20, they can hardly object on cost grounds.
Last but not least, if your garden really is your pride and joy and reflects years of hard work, then it may be wise to keep things under your own control by employing a gardener and including the cost in the rent. This removes the possibility of misunderstandings and should ensure that you get your garden back in the same condition that you gave it. -
The First Steps in Letting
Posted: Monday September 14th, 2009. 7:12pm
When letting your property, your primary objective is simple – you want to find a reliable tenant who pays the rent regularly and looks after your property as you would yourself.
When letting your property, your primary objective is simple – you want to find a reliable tenant who pays the rent regularly and looks after your property as you would yourself.
The reality is usually more complex than this. Letting your property comes with legal obligations and social responsibilities, many of which are unknown to anyone who does not make a point of keeping up with this rapidly changing legislative environment.
It is certainly worthwhile getting professional advice at the outset, not just about how to maximise the likely rent you can expect to receive, but also about how you can avoid the various traps along the way.
So during your initial meeting with your chosen letting agent (which we hope will be us of course) you can expect your agent to, for example, provide you with advice on any suggested repairs and improvements that may be needed in order to comply with health and safety regulations. They will also be able to arrange for gas and electrical safety checks to be carried out, as well as explaining why an inventory and property condition schedule is important.
The agent should discuss both landlord and tenant’s rights and responsibilities and give you advice on what action to take if the property is mortgaged, as well as on any insurance implications. They should also clearly explain the way in which tenants are sourced and referenced, and provide details of how deposits and client monies are protected.
A good managing agent will oversee the transfer of utilities to the new tenant and then go on to provide regular inspections during the course of the tenancy, and have a system in place that can rapidly be implemented covering physical emergency, non-payment of rent, effective eviction and tenant replacement.
For peace of mind, you owe it to yourself to use a competent, dedicated letting agency rather than trying to go it alone. You’ll probably see the benefits immediately!
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A Feeling of Space
Posted: Monday September 14th, 2009. 7:12pm
Unlike their continental counterparts, British tenants do not generally take account of the square footage of a house or flat when looking for their next home. Nevertheless, spaciousness is often a priority and invariably comes at a premium.
Unlike their continental counterparts, British tenants do not generally take account of the square footage of a house or flat when looking for their next home. Nevertheless, spaciousness is often a priority and invariably comes at a premium.
So if you are letting your property, it’s worth making sure you create a feeling of as much space as possible in order to attract a tenant, especially if the property is relatively small to begin with.
Here are a few pointers:- If you can’t offer great space, at least make sure other first impressions are good. Aim for maximum impact by sprucing up your entrance area. Keep it clean, any hedge trimmed, and hide away unsightly bins.
- Clutter can make a small property appear even smaller. So if your property is offered furnished, keep furniture and artwork simple, creating longer cleaner lines.
- Pay attention to the layout of furniture and have an obvious focal point to the room. Keep large pieces of furniture against the wall and where possible use colours that blend with the wall and floor colour. Throws can “dumb-down” darker pieces and add to a feeling of cosiness. Big patterns on one or two pieces look good, but should be positioned away from walls.
- Fully open up all blinds and curtains for a lighter roomier feel.
- Use lighter shades on walls and stick to white on the ceiling to increase the feeling of space.
- Mirrors can make a room appear larger if strategically positioned.
- If you have a patio, present it as an extension of your limited living space. This can be achieved by installing patio furniture alongside a few stylish containers providing colour.
Please feel free to call us if you would like any advice as to how best to present your property for rental in a crowded market! - If you can’t offer great space, at least make sure other first impressions are good. Aim for maximum impact by sprucing up your entrance area. Keep it clean, any hedge trimmed, and hide away unsightly bins.
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The Right People
Posted: Monday September 14th, 2009. 7:10pm
Despite the fact that some people regard all letting agents as more or less the same, there are in fact numerous selection criteria on which to judge the good from the bad, and the exciting from the mildly indifferent.
Despite the fact that some people regard all letting agents as more or less the same, there are in fact numerous selection criteria on which to judge the good from the bad, and the exciting from the mildly indifferent.
For example, there are many services and innovations which can make a difference to how effectively your property is offered for rental, and how the subsequent tenancy is managed. These could be the use of a dynamic mapping search facility, subscription to one or more of the key property portals, a particularly impressive website, real-time progress tracking or smart contemporary offices to name but a few.
However, despite the advances in technology, which we are typically among the first in the area to embrace, we still believe that it is the people that make or break a service-led industry such as our own.
Letting your property is an important, risky and emotive exercise, and unless a let is handled with sensitivity, courtesy, consideration and care, then such technical add-ons are wasted.
We believe that excellence in recruitment is as importance as achieving high rents and quick lets for our clients. Our staff are a reflection of our core values, based on a transparent service from dedicated property professionals who exhibit the highest levels of personal integrity, enthusiasm, and friendliness.
You deserve a good service from your letting agent, and we believe that this means regular and meaningful communication delivered by pleasant and personable staff who are thoroughly on your side throughout the process. Of course, they may not always tell you what you want to hear – but then there are plenty of letting agents who will – it’s your call! We believe sincerity is worth more than flattery.
